About The Loonie Adventures of a Forex Noob

“Huck loves her bucks!” I always say. The problem, of course, is how to make those bucks!! In this blog, I'll be posting my adventures as I traverse the forex world, while trying to catch some pips along the way. To do this, I will make use of classical charting methods as well as develop my own mechanical system. Not only will I talk about FX, but I'll also share how my day went along with any currency trade updates. Hopefully, by the end of this tale, I'll be able to achieve my goal of becoming a consistently profitable foreign exchange trader.

HLHB Weekly Update – October 29, 2012

HLHB Trend-Catcher

It looks like my HLHB Trend-Catcher 3.0 wasn’t able to mimic its performance from the week before as it produced some negative pips. Here’s a summary of all the signals generated as well as the corresponding results:

1. Long at 1.3038. Closed at 1.3046 due to new crossover. +8 pips.
2. Short at 1.3046. Closed at 1.3060 due to new crossover. -14 pips.
3. Invalid buy signal since RSI was already above 50.0 the candle prior the crossover.
4. Sadly an invalid sell signal since RSI was already below 50.0 the candle prior the crossover.
5. Invalid buy signal since RSI was below 50.0.
6. Invalid sell signal since RSI did not cross 50.0 from above.
7. Long at 1.2992. Closed at 1.2961 due to new crossover. -31 pips.
8. Short at 1.2961. Closed at 1.2970 when 50-pip trailing stop was hit. -9 pips.
9. Long at 1.2974. Closed at 1.2974 when 50-pip trailing stop was hit. Breakeven.
10. Short at 1.2972. Closed at 1.2933 when 50-pip trailing stop was hit. +39 pips.
11. Long at 1.2937. Closed at 1.2922 due to new crossover. -15 pips.

All in all, the system generated a small 22-pip loss. While it certainly wasn’t a good week, it wasn’t a terrible one either.

Now, on to some good news…

EUR/USD Short

Indeed, good things come to those who wait!

I decided to wait for EUR/USD to pullback to the 61.8% Fib level and test the falling trend line before jumping in on the downtrend. My strategy proved to be a good idea as price soon dropped and hit my first profit target at 1.2920.